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When money grows on trees-The case of beyond-compliance companies sourcing from the Amazon Rainforest

Engel, Maximilian LU (2016) In IIIEE Master Thesis IMEN41 20161
The International Institute for Industrial Environmental Economics
Abstract
The Amazon Rainforest is in grave danger of disappearing for good, due to a number of harmful economic activities, including land conversion for cattle ranching and monoculture, as well as unsustainable and illegal timber production. It has been shown, however, that the private sector has a crucial role in redressing socio-economic problems, causing deforestation and degradation. To illustrate this claim in the given context, three (3) reputable, sustainably-inclined companies, namely Natura, Precious Woods and Veja, are analysed, based on applicable strategic and value driver objectives, and how these translate into triple-bottom-line efforts and achievements thereof. Secondly, the paper goes on to explore contextual drivers of, and... (More)
The Amazon Rainforest is in grave danger of disappearing for good, due to a number of harmful economic activities, including land conversion for cattle ranching and monoculture, as well as unsustainable and illegal timber production. It has been shown, however, that the private sector has a crucial role in redressing socio-economic problems, causing deforestation and degradation. To illustrate this claim in the given context, three (3) reputable, sustainably-inclined companies, namely Natura, Precious Woods and Veja, are analysed, based on applicable strategic and value driver objectives, and how these translate into triple-bottom-line efforts and achievements thereof. Secondly, the paper goes on to explore contextual drivers of, and barriers to the expansion of beyond-compliance/sustainable businesses in the Amazon. In order to achieve this end, a number of on-site interviews, in conjunction with a subsequent survey, and a modified version of the Performance Framework, first applied in the context of the Portuguese manufacturing industry, were used.
The study found that the surveyed and interviewed businesses, showcased triple-bottom-line business models that take up a number of root causes of deforestation, ranging from below-par education to the absence of value-adding activities regionally. Moreover, scale, market positioning, financial stature, political influence and desirability to collaborate with other stakeholders on the part of the companies, were found to be decisive factors in maximising positive impacts locally. Another notable finding was that examined companies were profitable. However, relative to illegally sourced products, sustainable products from the Amazon are currently still less competitive due to the higher cost structure associated with full legal compliance, certification and above-average efforts. (Less)
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author
Engel, Maximilian LU
supervisor
organization
course
IMEN41 20161
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Amazon Rainforest, sustainable business, beyond-compliance companies, Performance Framework, Balanced Scorecard
publication/series
IIIEE Master Thesis
report number
2016:01
ISSN
1401-9191
language
English
id
8865076
date added to LUP
2016-03-22 12:20:00
date last changed
2016-03-22 12:20:00
@misc{8865076,
  abstract     = {The Amazon Rainforest is in grave danger of disappearing for good, due to a number of harmful economic activities, including land conversion for cattle ranching and monoculture, as well as unsustainable and illegal timber production. It has been shown, however, that the private sector has a crucial role in redressing socio-economic problems, causing deforestation and degradation. To illustrate this claim in the given context, three (3) reputable, sustainably-inclined companies, namely Natura, Precious Woods and Veja, are analysed, based on applicable strategic and value driver objectives, and how these translate into triple-bottom-line efforts and achievements thereof. Secondly, the paper goes on to explore contextual drivers of, and barriers to the expansion of beyond-compliance/sustainable businesses in the Amazon. In order to achieve this end, a number of on-site interviews, in conjunction with a subsequent survey, and a modified version of the Performance Framework, first applied in the context of the Portuguese manufacturing industry, were used. 
The study found that the surveyed and interviewed businesses, showcased triple-bottom-line business models that take up a number of root causes of deforestation, ranging from below-par education to the absence of value-adding activities regionally. Moreover, scale, market positioning, financial stature, political influence and desirability to collaborate with other stakeholders on the part of the companies, were found to be decisive factors in maximising positive impacts locally. Another notable finding was that examined companies were profitable. However, relative to illegally sourced products, sustainable products from the Amazon are currently still less competitive due to the higher cost structure associated with full legal compliance, certification and above-average efforts.},
  author       = {Engel, Maximilian},
  issn         = {1401-9191},
  keyword      = {Amazon Rainforest,sustainable business,beyond-compliance companies,Performance Framework,Balanced Scorecard},
  language     = {eng},
  note         = {Student Paper},
  series       = {IIIEE Master Thesis},
  title        = {When money grows on trees-The case of beyond-compliance companies sourcing from the Amazon Rainforest},
  year         = {2016},
}